2012 Budget - South Suburban Parks and Recreation

South Suburban Park and Recreation District
Summary of Significant Financial Policies
The following is a summary of the more significant Financial Policies for South Suburban
Park and Recreation District.
Financial Policies
The Finance Department is responsible for implementing and maintaining the systems of
accounting, controls, and auditing. This department shall distribute monthly financial reports
and other requested reports to staff and the Board of Directors that show the financial
condition of the District. An audit is required to be prepared annually by an independent
Certified Public Accountant within the State of Colorado.
Basis of Accounting
Governmental fund audited financial statements and budgets are reported using the
modified accrual basis of accounting. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the District considers revenue to be available if it is collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures
are recorded only when payment is due.
Property taxes and certain service fees associated with the current fiscal period are
considered to be susceptible to accrual and so have been recognized as revenue of the current
fiscal period. All other revenue items are considered to be measurable and available only
when cash is received by the District.
For the 2012 Budget, the District reports the following major governmental funds:
General Fund – This fund is the general operating fund of the District. It is used to
account for all financial resources except those required to be accounted for in another
fund.
Conservation Trust Fund – This fund is used to account for lottery proceeds from the
State of Colorado that are legally restricted to expenditures for park and recreation
purposes.
2010 1 Mill Fund – This fund is used to account for property taxes received from the
2010 1 Mill tax that are restricted for acquisition of parks, open space and natural areas,
acquisition and development of trails, and development and maintenance of open space,
parks, and trails. This fund will also account for any related grants or intergovernmental
funds received for qualifying projects.
Debt Service Fund – This fund is used to account for the accumulation of resources for,
and the payment of long-term obligation principal, interest, and related costs (other than
proprietary fund debt).
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